Yasmin Fahimi, the head of the DGB union, is demanding that all employers implement a mandatory company pension plan for their employees. According to the union leader, a mandatory two-percent contribution to this dedicated pillar would provide much-needed transparency about the balance between funding derived from the pay-as-you-go system and capital pensions.
Fahimi heavily criticized the recent resolutions put forth by the Pension Commission regarding the reforms of old-age provision, calling them insufficiently concrete. While the commission has clearly acknowledged the goal of ensuring a net replacement rate of 70 percent, she pointed out that the plan fails to specify how this target can be reliably reached without ultimately relegating the responsibility back to individual risk.
In her view, the current general proposal again shifts a portion of the overall objective onto individualized supplementary benefits, a strategy that has proven unsuccessful in the past. Conversely, she argues that establishing a mandatory company pension for all workers would provide an immediate and effective form of supplementary security.
